In obtaining governmental approvals for a Chatime franchise, who determines what approvals are necessary to comply with Legal Requirements during the Initial Term?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) Franchisee agrees to execute any and all instruments and documents, render such assistance, and otherwise cooperate with Franchisor, in order to obtain all governmental approvals Franchisor is required to obtain or which, in the opinion of Franchisor, are
- necessary at any time during the Initial Term, in the opinion of Franchisor, to comply with any Legal Requirements.
- (2) Franchisor has the right exercisable at its option, to submit, or to require Franchisee to submit, this Agreement to any Agency for registration or approval in the event Franchisor determines such registrations or approvals are necessary in order to comply with any Legal Requirements. If the Agency requires that any amendments be made to this Agreement as a condition to such approval or registration and such amendments are acceptable to Franchisor, Franchisor will deliver to Franchisee for execution an addendum to this Agreement, or other appropriate documents, to reflect such amendments.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisor determines which governmental approvals are necessary for the franchisee to comply with legal requirements during the initial term. Specifically, the franchisee agrees to cooperate with Chatime to obtain all governmental approvals that Chatime deems necessary.
Chatime also has the right to submit the Franchise Agreement to any agency for registration or approval if it determines that such actions are necessary to comply with legal requirements. If the agency requires amendments to the agreement as a condition of approval or registration, and Chatime finds these amendments acceptable, Chatime will provide the franchisee with an addendum or other documents to reflect these changes.
This means that while the franchisee is responsible for securing and maintaining all required licenses, permits, and certificates related to their obligations under the Franchise Agreement, Chatime retains control over determining which governmental approvals are necessary to comply with legal requirements during the initial term. This could include ensuring compliance with import regulations for products, customs clearance, and any other related activities.